Arvind Fashions Ltd. · NSE:ARVINDFASN
Arvind Fashions — Q1 FY22 Earnings Presentation
19 slides from Arvind Fashions's earnings presentation, Aug 6, 2021
Slide 1: Outcome of Board Meeting cover letter
ARVIND FASHIONS LIMITED A MEMBER OF THE LALBHAI GROUP Corporate Office: Du Parc Trinity, 8th Floor, 17, M.G Road, Bangalore – 560 001 Tel: +91-80-4155 0601, Fax: 91-80-4155 0651 Website: www.arvindfashions.com August 06, 2021 BSE Limited National Stock Exchange of India Ltd. Listing Dept. / Dept. of
Slide 2: Q1 FY22 Results Presentation
Arvind Fashions Limited Q1 FY22 Results Presentation August 2021
Slide 3: Agenda
Response to Covid-19 Q1 FY22 Performance Highlights Agenda Q1 FY22 Results with IndAS Way Forward 2
Slide 4: Covid-19 impact and response
Covid-19 impact and response • Second COVID wave was very challenging due to its severity • Created Safety Council, launched volunteer network and rolled out SOPs across operations against COVID • Organised oxygen pipeline, tele consultation, counselling services, free RT PCR test, hotel tie ups & C
Slide 5: Agenda
Response to Covid-19 Q1 FY22 Performance Highlights Agenda Q1 FY22 Results with IndAS Way Forward 4
Slide 6: Q1 FY22 Highlights
Q1 FY22 Highlights 1 Sales : Strong growth of 340%+ over Q1 FY21; 48% recovery pre-COVID (Q1 FY20) Power Brands : Growth stood at ~400% leading to significant reduction of losses Y-o-Y 2 EBITDA : Rs. 25 Crs loss compared to Rs. 33 Crs loss in Q1 FY21; despite lower rent concession (pertaining to fut
Slide 7: Details on the 'Unlimited' transaction
Details on the ‘Unlimited’ transaction • Signed definitive agreement for strategic sale of assets of ‘Unlimited’ retail business to V-Mart Retail Ltd. in an all cash deal in July’21 • ‘Unlimited’ operates a chain of 74 value fashion retail stores across South and West India and retails fashion appar
Slide 8: Higher sales growth leading to reduction in losses
Higher sales growth leading to reduction in losses Sales (Rs. Crs) EBITDA (Rs. Crs) 319 Q1 FY21 Q1 FY22 -25 -33 72 EBITDA improvement of Rs. 28 Crs Y-o-Y without considering future rent concessions Q1 FY21 Q1 FY22 7 Sales recovery at 48% compared to pre-COVID (Q1 FY20) * Continuing Brands
Slide 9: Faster sales recovery in FY22 vs FY21 (compared to pre-COVID)
Faster sales recovery in FY22 vs FY21 (compared to pre-COVID) Stores Dept. Stores FY21 FY22 61% FY21 FY22 41% 51% 29% 23% 28% 18% 25% 12% 7% 6% 2% 0% 2% 2% 0% Apr May June July Apr May June July Current year & last year sales as % of same months in FY20 * Continuing Brands 8
Slide 10: Strong growth in online (compared to pre-COVID)
Strong growth in online (compared to pre-COVID) Revenue over same period Key Drivers Omni-channel Q1 FY20 x • Omni-linkage of 100+ stores in Q1 taking total count to 600+ • 15-20% of store sales fulfilled through omni-channel SMU strategy 0.4x • Specially made merchandize for online channel lead
Slide 11: Q1 FY22 - Groupwise Performance
Q1 FY22 - Groupwise Performance Sales (Rs. Crs) EBITDA (Rs. Crs) Q1 FY22 Q1 FY21 % Growth Q1 FY22 Q1 FY21 Power Brands 262 53 398% (12) (29) Specialty Emerging Retail Brands 57 19 198% (13) (4) Total 319 72 344% (25) (33) Note: Power Brands – US Polo Assn., Tommy Hilfiger, Flying Machine and Arrow E
Slide 12: Efficient cost control
Efficient cost control Total (Rs Crs.) 240 -24% 73% 183 183 106 1 Q1’21 2 Q1’22 Q4’21 Q1’22 Employee Emoluments (Rs Crs.) Other Expenses (Rs Crs.) Rent Expenses (Rs Crs.) Savings of Rs. 21 Crs 30% 60 -14% 180 -27% compared to pre-COVID 51 51 98% 39 132 132 67 Q1 FY22 Q1 FY20 28 49 Q1’21 Q1’22 Q4’21
Slide 13: Strong focus on working capital management
Strong focus on working capital management Figures in Rs Crs. June’21 June’20 Change Mar’21 • Gross working capital reduced on 1015 1323 (308) 969 Q-o-Q basis despite impact on Inventory sales recovery due to 2nd wave Receivables 578 696 (118) 655 • Reduction in fresh inventory buys & strong debtor
Slide 14: Debt reduction journey continues led by sharper working capital control
Debt reduction journey continues led by sharper working capital control 1343 1244 1097 976 943 913 • Reduction in gross working capital coupled with final call money received in June’21 • Proceeds from ‘Unlimited’ transaction to reduce the debt further Mar'20 June'20 Sep'20 Dec'20 Mar'21 June'21 Gro
Slide 15: Agenda
Response to Covid-19 Q1 FY22 Performance Highlights Agenda Q1 FY22 Results with IndAS Way Forward 14
Slide 16: Q1 FY22 - Performance Snapshot
Q1 FY22 - Performance Snapshot Reported (Rs Crs.) Q1 FY22 Q1 FY21 Change Revenue from Operations 319 72 344% Other Income 21 58 (63%) Total Income 340 130 163% EBITDA (25) (33) - PBT (120) (149) - Discontinued Operations (63) (52) - Deferred Tax (Credit) (1) 12 - PAT (182) (213) - 15
Slide 17: Agenda
Response to Covid-19 Q1 FY22 Performance Highlights Agenda Q1 FY22 Results with IndAS Way Forward 16
Slide 18: Way forward
Way forward Short term • Expect strong business recovery to continue in Q2 resulting in positive EBITDA (pre-IndAS) • 150+ stores to be opened in FY22 • Sharp focus on costs and tight working capital management to lead to improved cash flow & profitability Medium term • Focus on 6 high conviction br
Slide 19: Thank You
Thank You